CHINA’S key CSI300 index yesterday posted its biggest single-day rise in two and a half years, as investors sitting on growing piles of cash took advantage of last week’s tumble to swoop on shares, emboldened by a chorus of media commentary asserting the bull market is not over yet.

    Investors anxious to buy stocks interpreted fresh official economic surveys as market-friendly, and were undeterred by a new wave of initial public offerings (IPOs) this week, including China National Nuclear Power Co.’s US$2.13 billion share sale.

    “The pattern in a bull market is that immediately after a plunge, money will pile in, pushing the market higher,” said Wang Yu, analyst at Pacific Securities Co. in Beijing.

    “To many investors, the rout last week means a huge reduction in market risks, creating new buying opportunities.”

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 4.9 percent to 5,076.18, the biggest one-day rise since December 2012. The Shanghai Composite Index gained 4.7 percent to 4,828.74 points, its biggest rise in more than four months. The Shenzhen Composite Index rose 4.79 percent to 2,926.96.

    Last Thursday, both the CSI300 index and the Shanghai Composite dropped more than 6 percent, and then they barely moved Friday as investors were divided on the market’s direction after the plunge. (SD-Agencies)